I notice the request for adjusted NPV the answer does not include the add on for the tax relief on the interest, the costs (which i did as 1.5/98.5) and the subsidy.
Furthermore I note that sometimes the answers are regeared to the specific client and sometimes they use the ungeared cost of equity (asset beta) I understand ungearing from the like company, but then i thought you had to regear it to the company doing the diversification.This is where i am struggling. It is to interpret what the examiner wants. Please help